Judge: Joel L. Lofton, Case: 21GDCV01161, Date: 2023-10-16 Tentative Ruling

Case Number: 21GDCV01161    Hearing Date: October 16, 2023    Dept: X

   Tentative Ruling

Judge Joel L. Lofton, Department X

HEARING DATE:      October 16, 2023                                            TRIAL DATE: No date set.

CASE:                         MAN CHING KWAN, an individual; RAYMOND MAN FU KWAN, as trustee of the Revocable Living Trust of Raymond Man Fu Kwan, v. ESTATE OF MICHAEL KWAN, and DOES 1-10.

CASE NO.:                 21GDCV01161

MOTION FOR ORDER

MOVING PARTY:               Referee and Non-Party Stephen J. Donell

RESPONDING PARTY:      No response filed.

SERVICE:                              Filed August 14, 2023

RELIEF REQUESTED

             Stephen J. Donell, the court-appointed referee (“Donell”), moves for an order approving his distribution plan, approving his final report and accounts, approving final fees and costs, and discharging him as referee.

BACKGROUND

             This case arises out of an attempt to invoke the right to partition a property. Plaintiffs Man Ching Kwan and Raymond Man Fu Kwan, as trustees of the revocable living trust of Raymond Man Fu Kwan, (“Plaintiffs”) each own an undivided 33.33% interest in the real property located at 9031 Ralph Street, Rosemead, Los Angeles, 91770 (“Subject Property”). Plaintiffs allege that Michael Kwan (“Decedent”) died on or about November 11, 2020. Plaintiffs allege that prior to his death, Decedent also owned an undivided 33.33% interest in the Subject Property.

            Plaintiffs filed this complaint on September 10, 2021, alleging three causes of action for (1) partition by sale, (2) unjust enrichment, and  (3) ouster/ejectment.

TENTATIVE RULING

            Donell’s motion for approval of his distribution plan, approval of his final report and account, approval of fees, and for discharge as referee is GRANTED.

LEGAL STANDARD

            “The court shall order the proceeds of sale and any security therefor to be paid, transferred, deposited in court, placed in trust, or invested in State of California or United States government obligations or interest-bearing accounts in an institution whose accounts are insured by an agency of the federal government, to or for the benefit of the persons in interest entitled thereto, as may be appropriate or as specifically provided in this article.” (Code Civ. Proc. section 873.810.)

DISCUSSION

            Stephen J. Donell, the court-appointed referee (“Donell”), moves for an order approving his distribution plan, approving his final report and accounts, approving final fees and costs, and discharging him as referee.

            On August 31, 2022, this court entered an interlocutory judgment for partition by sale of the Subject Property and for appointment of Stephen J. Donell as referee in the present case. Donell took various steps to sell the Subject Property. First, Donell retained counsel to file an unlawful detainer action for the Subject Property. (Donell Decl. ¶ 4.) Afterwards, Donell engaged in various repairs and renovations of the Subject Property. (Id. ¶¶ 5-6.) Prior to the cleanup being completed, Donell consulted with a real estate agent who recommended a list price of $699,000. (Id. ¶ 7.) Donell accepted an offer for $892,000 from Sieng Thong Sun and escrow closed on May 11, 2023. (Id. ¶¶ 8-9.)

            Donell provides that he paid $53,868.78 in interim fees and costs, $56,848.34 in legal fees, and $1,868.50 in accounting fees. (Donnel Decl. ¶ 11.) Donell also estimates that in the process of closing out the refereeship estate, he will incur $6,500 in additional fees and costs, $5,500 in additional fees for legal services, and $5,500 in additional fees for accounting services. (Id. ¶¶ 12-14.)

            Donell provides that, as of July 31, 2023, $682.182.48 remains in the refereeship estate. (Donnel Decl. ¶ 15.) He provides that after the total $17,500 in expected fees to close out the estate and an additional reserve of $1,000 for incidental expenses, the approximate balance of the refereeship estate will be $663,682.48. (Ibid.)  The court however does have questions regarding ‘unpaid fees’ and ‘extra legal fees’.  This can be discussed at the hearing.

CONCLUSION

            Donell’s motion for approval of his distribution plan, approval of his final report and account, approval of fees, and for discharge as referee is GRANTED.

            Moving Party to give notice.

Dated:   October 16, 2023                                          ___________________________________

                                                                                    Joel L. Lofton

                                                                                    Judge of the Superior Court